Hiring for a Unique Culture

Culture is an emergent phenomenon. It exists between the people who make up that particular culture, and evolves based on their interactions–the mythology, folk knowledge, and traditional practices they create and pass between themselves. If you hire based on skill alone, your internal culture will look pretty much like the rest of your industry, because it will be populated with the same kinds of people.

Unlike the Industrial Age, hiring today isn’t picking up a part to put into an already-designed machine to make the machine run. Hiring into an emergent environment only happens when the candidate fits both the current culture and the future culture. Emergent strategy depends on the people within the organization working with and off of one another to yield unplanned results.

Here are a few tweaks to your hiring practices that may yield better results:

  1. Don’t appeal to everybody. Many organizations just want to be liked by everyone. They want to be the place where any individual out there would love to work. Don’t do that. Your organization is unique, and you want people who fit that collective vision and identity. Netflix asserts very clearly that its culture isn’t for everyone, but that is precisely what makes its culture all the more appealing to those who do fit. Figure out now why people wouldn’t want to work in your organization, and you’re on the way to creating a unique and powerful culture.
  2. Fill blind spots, not roles. Roles are a collection of responsibilities and skills that fit a pretty standard definition. Blind spots require a more complete understanding of your team and organization. Simply put, a blind spot is something you need that you don’t have, at the broadest definition that is required (e.g., do you really need someone with three years of Trello experience or do you just need someone who’s comfortable with agile project management?). A blind spot may be a specific competency, like a specific piece of technology, or it may be a tweak to the chemistry of the current team–for example, a more outgoing individual that will facilitate communication between the more introverted members of a remote team. It strips away the expectations that come with hiring someone into a particular role, allowing the new hire to integrate more organically with what’s already going on in your team for the first few months until they have a rhythm going.
  3. Advertise your vision, not your requirements. Anyone who isn’t excited by your specific vision doesn’t belong to your culture. And don’t just advertise the vision of your company. If possible, state succinctly but with enthusiasm what your vision is for the team and even for the specific role. A less-skilled candidate who is energized by the collective vision will be twice as valuable as a more skilled candidate who just wants a new job. And bear in mind that a long list of qualifications belies a search for an interchangeable part. If you want your candidates to get excited about a position, pare it down to your vision and the key blind spots you’re trying to fill. Leave room for the candidate to surprise you.
  4. Interview thoroughly. The hiring process I’ve seen averages two interviews. Google suggests no more than five–and then actually goes on to interview candidates five times, looking for factors including raw skill, problem solving ability, and cultural fit. In an adaptive organization, you’re going to want to take advantage of four or five interviews in order to thoroughly vet the skills, the personality, and the chemistry with the current environment.
  5. Weigh potential. Today the pace of change in technology and the economy means being able to learn what’s needed for the future is more important than having what’s needed in the present. Your people will not only need to adapt as things change, but they will need to create change themselves. And then they will need to live into that change. If the candidate doesn’t have what’s needed to adapt to whatever his role will be in three years, he may not be the best fit.
  6. When in doubt, leave them out. Don’t hire a candidate unless they leave you no other choice–by which I mean, she is such an excellent fit for your organization that you couldn’t bear to let her take another job. Turn away business before hiring someone who doesn’t add to your culture. Adaptive organizations thrive based on the number and quality of connections between employees. Hiring someone who isn’t going to improve your internal network is poison to your long-term goals.
  7. Enlist your recruit’s help. Zappos offers a $2,000 bonus for new hires to quit. The idea is that a new hire will take the money if they don’t feel that they are a good fit for the culture or they don’t believe in the long-term potential of working with the company. In the long run, the occasional $2,000 quitting bonus saves the company a lot of money on people that might otherwise be a drag on the culture. A new-hire quitting bonus might not work for you, but you should still look for ways you can work with a new hire to ensure he’s the right person, and part ways amicably if he’s not.

Filling your organization with effective people who fit with the people around them and are excited about a common vision is the basis of any good culture, not just in an adaptive organization. But because of the importance of emergence in adaptive organizations, getting the mix of people right for your culture is a crucial requirement for success.

EDIT: Reader Brian Gorman offers two additional points to consider: “Having spent more than four decades living in the world of organizational change, I would add two more to his list. 1. Hire for the culture that you want, not the culture that you have. 2. Hire for resilience; you need people who can learn new skills, and shift their mindsets, as your organization continues to change.” I would add a caveat to the first that anyone you hire needs to be able to work in the culture you have today, or she’ll be out the door as soon as she can–which makes finding adaptable people all the more important during a period of change.

Which of these points do you find is most important or illuminating? Are there any important points about hiring for culture that I’ve missed? Do you disagree with my points? I look forward to discussing it with you in the comments.

The Strengths of Adaptive Organizations

While most of my posts can be applied to many different kinds of organizations, and even more can be applied to businesses specifically, I write all my posts with adaptive organizations in mind.

Adaptive organizations are generally loosely-structured, non-hierarchical, and depend on temporary teams to pop up and disband on their own. They’re the primary focus of Frederic Laloux’s book Reinventing Organizations, as well as the driving philosophy behind the consulting firm Undercurrent.

Adaptive organizations are designed to maximize the co-operation of human and machine. Unlike Industrial Age organizations, adaptive organizations (what Frederic Laloux calls “teal” organizations) do not rely on humans functioning as machines. Instead, they depend on the value created by healthy individuals, collected from diverse backgrounds and bonded into communities by a common vision for the future.

The contrast between the two concepts can be so pronounced that some can’t even fathom how these futuristic organizations would work. But the fact that adaptive organizations are already beginning to emerge (as with Spotify, Valve, and GitHub) shows that they aren’t just a philosophical exercise. They are real, they are successful, and they will continue to thrive.

Laloux outlines three principles of adaptive organizations: self-management, wholeness, and evolutionary purpose. While these are incredibly useful guidelines for creating a future organization, they don’t quite explain why adaptive organizations work. I’d like to propose three corollaries to Laloux’s principles.

  1. Traditional organizations rely on planned behavior; adaptive organizations encourage emergent behavior. Traditional organizations are heavily planned: they hire people with specific skill sets to fit into specific roles and accomplish specific tasks that make up a system that’s carefully designed to play out the vision of the entity at the top. This ultimately makes traditional organizations less than the sum of their parts. Adaptive organizations operate at the opposite end of the spectrum: they expect employees to manage themselves and one another dynamically. Fixed hierarchy is counter-productive because it limits deviation from an established agenda; in a fixed hierarchy, I don’t have much room to do anything that doesn’t directly benefit my immediate supervisor, and he in turn has little room to do anything that doesn’t benefit his immediate supervisor. Designing an organization to encourage emergent behavior means opening up to unplanned innovation by anyone at any time. It can be equal parts dangerous and game-changing; the art and science of emergent behavior is to minimize the danger without discouraging the game changers.
  2. Traditional organizations consolidate efforts in an attempt to design the best, most efficient single outcome; future organizations rely on multiple discovery to generate iterative, multi-dimensional innovation. When a traditional organization discovers two different efforts to accomplish a similar goal, it’s seen as inefficient. Duplicative efforts are shut down and/or consolidated into one another, leading to political battles and possibly resentment on the part of the employees who were trumped. These consolidation efforts frequently fail, either in process (they are never completed) or in product (the outcome is too unwieldy or unhelpful). Multiple discovery allows several efforts to reach the same point from multiple directions, or to reach different points from a similar origin. The outcomes of the individual efforts tend to be leaner and more focused, and if one option fails there are others at the ready.
  3. Traditional organizations depend on metric productivity (output divided by hours divided by pay rate); adaptive organizations develop unique value. Metric productivity is the enemy of unique value: it suggests that all products, customers, and employees are comparable and judges each employee against some Platonic ideal of productivity. Metric productivity is what causes us to believe that putting in more hours makes us more valuable to our employer, that what we do to our bodies in our off-hours isn’t important to what happens when we’re on the clock, that our mental and spiritual and social well-being is something we do on our own time and work doesn’t factor into it. But metric productivity isn’t just bad for employees, it’s also a dead end for employers. If your concern is wholly for metric productivity, chances are high that you’re in competition with someone. Competition is a sinkhole. If you’re not digging yourself out of it and creating unique value, you’re bound to lose.

This is how adaptive organizations can thrive in spite of the concerns that keep leaders locked into traditional models. Adaptive organizations eschew the assumptions of traditional organizations–efficiency, competitive pricing, planned behaviors and outcomes–and take the lead because they engage both employees and customers in a way that makes traditional competition obsolete. They also gain efficiencies in unexpected ways–from Buurtzorg spending less time on patients by spending more time with them, to Netflix’s “the best are 10x better than average” philosophy. In the end, adaptive organizations are even better than traditional organizations at traditional metrics, because they focus on purpose and put the future of their organization in the hands of each individual. Instead of focusing on functional planning, an effective leader provides focus, narrative, and inspiration to the efforts of the collective–as Saint-Exupery puts it, she teaches them “to yearn for the vast and endless sea.”

This post serves as the frame for my next several posts, in which I’ll tackle multiple discovery and dig further into emergent behavior to provide some practical understanding of how to apply these concepts to a real organization.

What do you believe about adaptive organizations? What’s keeping you from applying these principles to your own organization? I look forward to discussing with you in the comments.

Motivating by Story: A Lesson from Theater

When you go to see a play, you may sit down with some assumptions about the people you see on stage. Among them may be an assumption that all those people want to be there.

A stage or a film set isn’t substantively different from the environment on a work team–the egos may be a little bigger, but if you’ve spent any time leading people, you’ve probably seen some big egos already.

One of the difficulties you might not expect lies in getting the cast on the same page. A director’s ability to interpret a script (which is tantamount to meeting the requirements of a project) depends on each actor individually working with that interpretation.

The irony is that for everyone to be on the same page, everyone has to be on a different page. Having a big-picture understanding of Hamlet finding out about and then exacting revenge for the murder of his father is a great perspective to have, but it’s not necessarily the story each actor is playing. Each person in the cast has to have a unique story in order to effectively and convincingly fulfill his duties.

To Laertes, Hamlet is a story about revenge–against his sister’s boyfriend for driving her to insanity and suicide. To Claudius, it’s a story about the ambition of a man who wouldn’t accept the cards dealt to him and worked to improve his station.

Similarly, one of the most important motivators in a team is not to see the big picture, but to see the small one–to see my story. It’s too easy to clock in and check out when I see what I’m doing as serving someone else’s story, and I’m just selling a bit of my life for a paycheck. To live fully within the work I’m doing, I have to understand: what am I doing right now to live my values?

Do you know the stories your people are telling? Do you know not only their value, but their values? Every level of organization has separate values: a nation, a business, a team, an individual. If you know their values, it will be easy to help them see their own stories in the larger story you’re telling together.

“Sure,” you might say, “I can show a key player how his individual story weaves into the big picture. But there are some people–interns, new hires, people from other departments or other companies–who tend to see their roles as small and interchangeable. And they are,” you may even say, “because they don’t have the specialization or depth of involvement to create unique value.”

There are two roles in Hamlet that are so famously insignificant and interchangeable that Tom Stoppard wrote a play about how insignificant and interchangeable they are: Hamlet’s friends, Rosencrantz and Guildenstern.

These two characters have no distinguishing features and serve only to move the plot forward. The actors could easily clock in and check out. But a good director doesn’t ignore even the smallest part, particularly if she already has star players locking down the major roles. The flavor of the end product can be disproportionately affected by these seemingly insignificant roles.

Ultimately it comes down to the same objective: Even these small, interchangeable players have to see what they do as the integral, project-defining work that it is. Losing even the least significant roles confuses and degrades the end product.

Could you have a successful product without it? Of course–it happens all the time. I’ve seen successful projects with much more significant roles that were poorly executed. But attention to the least of your team members, and the ability to integrate their stories seamlessly into the final product, is what separates a passable director from a great leader. Learning the individual stories of each of your players, and weaving each of them into the whole, can take a project that is unlikely to even be finished and turn it into an incredible success.

Recognition: The Motivational Compass

I’ve discussed removing obstacles and providing feedback. I want to talk about one other way to feed motivation, one that walks a line between intrinsic and external: recognition.

Lack of recognition is a surefire way to kill motivation. In fact, if you really want to destroy someone’s will to work, don’t criticize their efforts–just ignore them. And yet, many leaders seem to operate on the assumption that if something is good it will be self-evident, and end up seeming to ignore the fruitful efforts of those around them.

In American business, we’ve mythologized disruptors who plough forward with complete disregard for the praise or derision of others: Steve Jobs is our Hercules, Elon Musk our Perseus. But this mythology ignores the reality of the human social identity in favor of the fraction of a percent who accomplish radical individual change. It also ignores the reality that the vast majority of what happens in the world–even the vast majority of change–is a product of those who are not disruptors. We idolize the individual who makes an enormous change while downplaying the collective power of millions who make small changes.

And for those millions making small changes, recognition is completely critical. It’s a social compass: we want to know that what we are doing is useful to those around us, to guide our further efforts to be more useful. In ancient times, it was largely self-evident: if I shoe a horse or patch a tent, I can see how it’s useful to my customer. Today, business is so abstract that often the only indication of whether something is useful is the explicit response of the people around us–particularly in remote work environments (e.g., working from home).

I feel recognized when someone to whom I’ve given authority to value my work has evaluated it, found it valuable, and expressed that value back to me.

I’ll use this definition as a jumping off point to discuss the important parts of recognition:

  • someone: Unlike feedback, which can be automated, recognition is an essentially human, social act. The value of recognition is that the phenomenon exists in another person’s consciousness. Consider even the word, “recognition:” making my experience (of another person’s contribution) conscious. Unless the phenomenon exists in human consciousness and is expressed sincerely out of experience, it is false and doesn’t serve the purpose of recognition as a motivator.
  • to whom I’ve given authority: Authority doesn’t necessarily fall along any chain of command. I make the decision to give authority based on my own values. Every action has an intended impact and an intended target, whether these things are conscious or unconscious, deliberate or haphazard. The target of that impact is usually the one to whom I give authority. (This is true because of the converse: the one to whom I give authority is usually the target of my intended impact, even if there’s a more obvious impact on someone else.) However, we may also give authority to others we respect.
  • authority to value my work: The particular type of authority is contextual. The work I’ve done is intended for a specific purpose. To that end, the person who has authority in each instance will depend on the work that is being valued.
  • has evaluated it: Evaluation is a conscious act–it’s not simply taking and using the object, but specifically noting its features and overall usefulness. This is the act of recognition: acknowledging one’s own experience of the work and bringing it to consciousness.
  • found it valuable: Recognizing that someone’s work is useless isn’t helpful when trying to encourage motivation. Even if the work turns out not to be valuable for the specific purpose you intended, try to recognize what is valuable about it. If it’s utterly irredeemable, then the situation may call for feedback but not recognition.
  • expressed that value: These last two steps can sometimes get lost in the act of recognition, when I recognize that something is valuable to me and then go out and use it, while forgetting to report its value. The danger is in believing that recognizing value is sufficient and then keeping that recognition to myself. I not only have to recognize value, but express the value. Expressing the value as I perceive it is enough; even if the work is part of some larger scheme, it doesn’t need to accomplish its ultimate ends to be successful.
  • back to me: This is another point that can be overlooked. Expressing the value you perceive to someone else is great, and can lead to great things. But that’s not the purpose of recognition. Recognition reflects my perception of value back to the person who created that value.

Has this post been valuable to you? What was valuable about it? How could it be more valuable?

Feedback: The Motivation Superpower

Intrinsic motivation, left to itself, can be unfocused. This is especially true across an entire organization. There are ways to improve focus through establishing shared values and getting everyone to tell the same story, but there are also mechanisms for improving the focus of an individual’s intrinsic motivations. Few of these mechanisms are more fundamental than feedback.

I don’t mean peer review forms or a semi-annual sit-down with the boss. I mean simple feedback loops that work throughout every day.

Simple feedback works like this: A subject takes an action, there is a reaction, and information about the reaction is returned to the subject, who can then use the information about the reaction to modify her activity. I touch a hot kettle, the kettle burns my fingers, my nerves send information about my fingers burning back to me, and I pull my hand away. This is how fundamental feedback is. But because so much business in today’s world is abstract, we have to construct feedback loops deliberately rather than expecting feedback to happen on its own.

Lack of feedback can quickly erode motivation. And the more entrepreneurial or “self-starting” a position is, the more important feedback is to the person in that position. Feedback is your sight, like a bat echoing its own songs to understand the contour of the world around it. If you don’t hear an echo, how do you know what to do?

Yet for how fundamental it is, it’s surprisingly easy to forget. And then it’s surprisingly easy to chalk up motivation problems to lack of incentives, or poor leadership, or other priorities getting in the way, when really the people around you are lost in a world that doesn’t echo back at them.

How can you create effective feedback?

Feedback must be immediate, contextual, and apparent. Feedback is a behavioral stimulus–it has to fit both the time and the context of the action that caused it, and it has to be clear and concise in order to reveal information that’s useful for subsequent action.

This doesn’t mean feedback is always a result of things that are done–sometimes it’s the result of something that’s undone. Networking sites like LinkedIn and dating sites like Match.com tend to provide feedback in the form of a percentage completion bar to let you know how “complete” your profile is. Of course, your profile on these sites is as complete as you want it to be–but by creating this bit of feedback, such sites are able to encourage participants to improve the quality of information about themselves without offering any incentive other than having a “more complete” profile.

Feedback is a leadership superpower because all feedback is either grounded on some fixed point (values), directed toward some fixed point (objectives), or both. Thus continuous feedback is a way of aligning the efforts of a team toward the same values and objectives. And if you focus on those ends–values and objectives–when providing feedback, you can effectively avoid micromanagement while getting results that both satisfy your goals and represent your team.

Sometimes as a leader, I may have to manufacture feedback. This may require a shift in perspective: rather than believing there’s no feedback available because something is tied up in political limbo, I may need to provide feedback on the work itself–its quality, its relevance, etc. My team member will be able to take that feedback and apply it to other efforts. As a consequence, they’ll also be creating value that better fits my own vision, since it’s directed toward my feedback.

I may also have to generate feedback for myself. One way to go about this is to establish clear expectations with every completed action. After completing something for which I expect feedback–which does not necessarily mean something that requires “notes” or changes–I can mention the kind of information I want to receive and the date by which I would like to receive it, and then follow-up after the appointed time has passed. Remember this information should be immediate (and contextual), concise, and oriented toward fulfilling values and accomplishing objectives; it should as a result be quick and easy for the requested party to provide.

Proper application of feedback can, on its own, stimulate a lot of action without the addition of artificial incentives. It’s the first step in turning intrinsic motivation outward, but it doesn’t yet offer an actual incentive–merely a reflection. The information reflected back at us also implies specific objectives–something that someone outside of us is looking to find, and therefore something we can work specifically to improve, which we do if we have the intrinsic desire to create something useful for another person. Giving feedback without tying it to any extrinsic reward is the second level of motivational strategy.

What are some effective ways you’ve found to provide feedback to others? What ways have you learned to solicit useful feedback from others?

How to Value Your Diversity

Equal pay for women is a checkmate strategy.

There are two possible schools of thought when it comes to equal pay. One is that women are the same as men; the other is that women are different from men.

If women are the same as men, then they deserve equal pay. This is easy to understand: If women are the same as men with regard to their work, then if business is a meritocracy they deserve to be making the same amount for the same work.

I’m of the camp that women and men are statistically different. (By which I mean you can’t narrow down from the generality to say any one woman is a certain way compared to any one man, but on average women tend toward certain traits and men toward others.) Whether this difference is primarily the product of cultural expectations is irrelevant to the discussion at hand.

That women are different and therefore deserve equal pay goes back to my discussion of diversity and innovation. Innovation is recombinant, meaning it requires a diversity of perspectives, values, and opinions that can be synthesized and resolved in new ways, sometimes resulting in entirely new ideas. If women are different from men, this contributes value to the innovation process.

But there’s a problem with unequal pay and the relative value of the individual’s contribution. By setting one person’s pay lower than a peer, you are also setting the relative value of that person’s contribution.

This sounds counter-intuitive to anyone brought up on supply-and-demand economics, which say you’re paying less for the same resource. Yet we’ve seen time and again that the amount you pay for something changes its practical value. If you paid a hundred dollars a month to read my blog posts, even if the product wasn’t substantively changed, you’d be taking these words a lot more seriously. This blog would, in effect, become a different product in your mind.

The same behavior is at play in your employment, even where the actual amounts you’re paying each employee are hidden from each other. The behavior is subtle: management values this person’s views more than another’s; or a particular employee is bolder because he knows he is being paid on the upper end of his market range. Meanwhile, people who are being paid less than their contribution is worth may be holding back. Why should I be investing more in my employers than they’re investing in me?

Thus, by paying an employee less, you are actually making her contribution less valuable.

Thus it isn’t a matter of paying women equally, but valuing women equally. Women who move forward with the knowledge that they are paid equally, and men who encounter women with the knowledge that they are paid equally, will both value the contributions of those women more. And because these contributions add a diversity of perspective–and those perspectives are valued at the same level as their male peers–they contribute value to the end product.

Thus, equal pay is simply logical from a business standpoint. The same rationale applies to equal pay for people of other cultures, subcultures, or anyone who enters a business environment with a new perspective. Short-changing a perspective leaves it anemic; and starving an investment, like your investment in an employee, is bad business.

The Four Ways to Fail

What does it mean to fail well?

As I’ve discussed, it’s definitely more important than success. But it’s possible to fail badly. What does it mean to fail well?

Knowing how to fail is more important than knowing why you failed or why you succeeded. Knowing how to fail will transform your organization.

The worst way to fail is to lay blame and chop heads. This is a common reaction, but it is a reaction that is incongruous with failure. If someone sabotages your business, or if someone betrays you, it makes sense that you would cut them off before they do more damage, but cutting down someone who makes a sincere effort is counterproductive. Blaming and cutting people down will only sabotage future success without doing anything to change the current failure, and encourages a culture that hides mistakes out of fear rather than acknowledging and dealing with them.

The second-worst way to fail is to brush aside the failure and move forward as though it never happened. This is what people will do when they operate in an environment where failure is seen as unequivocally bad. Failure gets swept under the rug before it gets worse. If you frequently discover failures at the last minute or even after the fact–failures that were hidden–it means the people working for your business don’t feel safe to fail. The first step toward failing well is being allowed to fail at all.

The second-best way to fail is to acknowledge the failure as quickly as possible, assess the damage and the causes, and put into place an action plan to deal with the failure. Documenting the causes and circumstances of failure creates important data points for later improvement, an improvement that will likely become a big project of its own.

The best way to fail is to put into place a methodology that anticipates failure. It’s surprising how often failure is unexpected, which is to say we expect success and then deal with failure as it comes. Far better is to expect failure in the process of improving success. Establishing a methodology not just to take advantage of failure but to make it an integral part of your business is by far the best way to fail, and allows us to improve continuously without having to turn improvement into its own project.

Two side notes: There are, of course, types of failure that are outright dangerous, from design defects in automobile safety systems to errors in financial calculations that cause massive losses. For good reason, such things require redundancy, regulation, and testing to ensure they are safe.

And secondly: If failure happens to be unequivocally bad for your job, you’d better start looking into new careers, because you’re likely to be automated away.

This Is More Important Than Success

We have been told not to let our failures get us down, and many people believe this means we should put our failures behind us as quickly as possible and keep moving. We spend hours, days, months, examining successes and trying to emulate them and turn them into strategies.

But failing well is more important than success. Success is just success, and there’s not much more you can do; but failure is opportunity, and it will slip away if you don’t seize it.

When an effort has the result I intend, it can be for any combination of reasons, both within and beyond my control. But when I don’t get the result I’m looking for, it’s important for me to find out what I can about why I didn’t succeed, look for the variables I could have influenced, and at the very least try something different next time. If I move too quickly past my failures, I’m likely to repeat them; if I move too quickly past my successes, at worst I may forget to celebrate them. (Celebrating successes is important too–but we’ll get to that later.)

As you might have heard, the road to success is paved with failures. If you plan to succeed on a regular basis, you’ll need to learn how to pave.

Ignoring the importance of failing well doesn’t just mean repeating your mistakes. It also has an impact on your organization’s culture. Your employees tend to do less work at or above their level of competence for fear of doing it incorrectly, which means that higher-level employees and managers are left doing lower-level work. So much for “high-performance culture.”

Glossing over failures at the organization level also leads to poor communication at the individual level. If I’m trying to make the failures of my business disappear, should I really be surprised when an employee makes an enormous miscalculation and doesn’t tell me about it until the last minute? The more failure is accepted and dealt with properly, the less stigma will be attached to it and the easier it will become to handle.

It should come as no surprise that this applies to your life as well as your business. Anticipate failure and learn how to fail well, and it will lead you to a richer, wiser life.